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SEC Filings

S-1
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1 on 07/28/1999
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charges related to equity appreciation rights plans of $3.8 million for the
period from January 1, 1998 through December 23, 1998, and an increase of $1.5
million in management fees charged by Charter Investment as a result of the
acquisition of Sonic.
 
     INTEREST EXPENSE.  Interest expense increased by $12.2 million, or 237.4%,
from $5.1 million in 1997 to $17.3 million for the period from January 1, 1998
through December 23, 1998. This increase resulted primarily from the $12.1
million of additional interest expense attributable to indebtedness of $220.6
million, including a note payable for $60.7 million, incurred in connection with
the acquisition of Sonic.
 
     NET LOSS.  Net loss increased by $12.6 million, or 272.5%, from $4.6
million in 1997 to $17.2 million for the period from January 1, 1998 through
December 23, 1998. This increase occurred primarily because the increase in
revenues that resulted from cable television customer growth during this period
was not sufficient to offset the significant costs related to the acquisition of
Sonic.
 
1997 COMPARED TO 1996
 
     REVENUES.  Revenues increased by $4.0 million, or 26.8%, from $14.9 million
in 1996 to $18.9 million in 1997. The primary reason for this increase was the
acquisition of five cable systems in 1996 that increased the number of customers
by 58.9%. Revenues of CCP Holdings, excluding the activity of any other systems
acquired during the periods, increased by $0.7 million, or 8.9%, from $7.9
million in 1996 to $8.6 million in 1997.
 
     OPERATING EXPENSES.  Operating expenses increased by $3.3 million, or
55.5%, from $5.9 million in 1996 to $9.2 million in 1997. This increase was
primarily due to the acquisitions of cable systems in 1996 and the loss of $1.4
million on the sale of a cable system in 1997.
 
     GENERAL AND ADMINISTRATIVE EXPENSES.  General and administrative expenses
increased by $0.4 million, or 16.8%, from $2.2 million in 1996 to $2.6 million
in 1997. This increase was primarily due to the acquisitions of cable systems in
1996.
 
     DEPRECIATION AND AMORTIZATION.  Depreciation and amortization expense
increased by $1.5 million, or 32.9%, from $4.6 million in 1996 to $6.1 million
in 1997. There was a significant increase in amortization resulting from the
acquisitions of cable systems in 1996.
 
     MANAGEMENT FEES/CORPORATE EXPENSE CHARGES.  Corporate expense charges
increased by $0.2 million, or 26.9%, from $0.4 million in 1996 to $0.6 million
in 1997. These charges were 3.0% of revenues in both 1996 and 1997.
 
     INTEREST EXPENSE.  Interest expense increased by $0.7 million, or 16.0%,
from $4.4 million in 1996 to $5.1 million in 1997. This increase resulted
primarily from the indebtedness incurred in connection with the acquisitions of
cable systems in 1996.
 
     NET LOSS.  Net loss increased by $1.9 million, or 69.8%, from $2.7 million
in 1996 to $4.6 million in 1997. This increase is primarily related to the $1.4
million loss on the sale of a cable system.
 
LIQUIDITY AND CAPITAL RESOURCES
 
     Our business requires cash to fund acquisitions, debt service, capital
expenditures and our ongoing operations. We have substantial ongoing capital
requirements for the construction, expansion and maintenance of our cable
systems. Capital expenditures are primarily made to rebuild and upgrade our
existing cable systems. We also spend capital on plant extensions, the launch of
new products and services, converters and system maintenance. Historically, we
have been able to meet our capital requirements through our cash flows from
operations, equity contributions, debt financings and available borrowings under
our credit facilities.
 
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